SMART Objectives

The objective is the starting point of the marketing plan. Once environmental analyses (such as SWOT and PEST) and marketing audit have been conducted, their results will inform objectives. Objectives should seek to answer the question 'Where do we want to go?'. The purposes of objectives include:
  • to enable a company to control its marketing plan.
  • to help to motivate individuals and teams to reach a common goal.
  • to provide an agreed, consistent focus for all functions of an organisation.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed.

  • Specific - Be precise about what you are going to achieve
  • Measurable - Quantify you objectives
  • Achievable - Are you attempting too much?
  • Realistic - Do you have the resource to make the objective happen (men, money, machines, materials, minutes)?
  • Timed - State when you will achieve the objective (within a month? By February 2010?)

Some examples of SMART objectives follow:

1. Profitability Objectives

To achieve a 20% return on capital employed by August 2007.

2. Market Share Objectives

To gain 25% of the market for sports shoes by September 2006

3. Promotional Objectives

To increase awareness of the dangers of AIDS in France from 12% to 25% by June 2004.

To increase the sale of DAZ washing powder from 2% to 5% of our target group by January 2005.

4. Objectives for Survival

To survive the current bad publicity. To survive the downturn in retail sales.

5. Objectives for Growth

To increase the size of our China operation from 2,000,000 in 2002 to 4,000,000 in 2003.

6. Objectives for Branding

To make Y brand of bottled beer the preferred brand of 21-28 year old females in North America by February 2006.

 

Create your own SMART Presentation

You have been hired you to help them with their marketing decision making. From the information you can collect from studying the websites and news pages, create a presentation identifying six SMART objectives for one of the following companies:

  • Nike, the Sports wear company
  • BT Internet
  • Psion
  • Freeserve
  • Google
  • DMA, online direct marketing company

Create a PowerPoint show identifying six SMART objectives. Use a separate page for each objective.

There are many examples of objectives. Be careful not to confuse objectives with goals and aims. Goals and aims tend to be more vague and focus on the longer-term. They will not be SMART. However, many objectives start off as aims or goals and therefore they are of equal importance.

    Present in a PowerPoint show six SMART objectives for your fantasy Business